The UK government has unveiled a set of measures aimed at easing the transition to electric vehicles (EVs) for car manufacturers, amid mounting pressure from global economic challenges and recent US tariffs on imported vehicles.
On Sunday, Prime Minister Keir Starmer confirmed the government would offer more flexibility on how carmakers meet upcoming EV production targets. The announcement comes in the wake of new 25% tariffs imposed by the United States on vehicle imports, which have already had a tangible impact on British manufacturers.
Jaguar Land Rover Automotive PLC announced on Saturday that it would pause shipments to the US in April, citing the need to reassess operations in light of the “new trading terms”.
In response, Starmer said he was prepared to directly intervene to support affected sectors and laid out a revised plan for the automotive industry. Under the updated framework, the ban on the sale of new petrol and diesel cars remains in place for 2030, with hybrid vehicles permitted until 2035. Small and micro-volume manufacturers, including supercar makers such as McLaren and Aston Martin, will be exempt from the targets.
The government has also confirmed that internal combustion engine vans will be allowed until 2035.
Importantly, the new rules will allow manufacturers to fall short of annual EV targets through to 2026, provided they meet the overall goal by 2030. This move is intended to give firms greater flexibility in managing production schedules and adapting to market fluctuations.
“Global trade is being transformed, so we must go further and faster in reshaping our economy and our country,” said Prime Minister Starmer. “These bold changes to how we support our car industry will help ensure home-grown firms can export British cars built by British workers around the world.”
The government has already committed £2.3 billion to support EV production and said this package of measures will remain under review as the effects of international trade policies continue to unfold.
The UK automotive industry, which employs around 152,000 people and contributes £19 billion annually to the national economy, is seen as a strategic sector in the broader push toward decarbonisation and green industrial growth.
